Monty Company began operations late in 2024 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2024 and no markdowns during 2024, the ending inventory for 2024 was $12, 977 under both the conventional retail method and the LIFO retail method. At the end of 2025 , management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2025 . The following data are available for computations.
Cost Retail
Inventory, January 1, 2025 $12,977 $18,400
Sales revenue - 80,000
Net markups - 9,000
Net markdowns - 1,600
Purchases 62,100 86,700
Freight-in 15,062 -
Estimated theft - 2,200
Compute the cost of the 2025 ending inventory under both:
The conventional retail method.
Ending inventory using the conventional retail method $__________.
